Lease vs Finance in Edmonton, AB
Even though shopping for a new car can be very exciting, it also comes with an overwhelming amount of options. In addition to deciding which make and model is best, shoppers also have to figure out if they would rather finance or lease the new vehicle. When trying to decide whether to finance or lease a new vehicle in Edmonton, AB, shoppers must consider the advantages and disadvantages of each option.
The main factors that determine whether leasing or financing is the best course of action are your budget and personal preferences. Which option best fits into your lifestyle?
|You pay to use the vehicle during the term of the lease and must return it at lease end unless you choose to purchase the vehicle.||Ownership||You own the vehicle free and clear after your financial obligations are met. It will be yours to keep of trade-in on your next vehicle.|
|Monthly lease payments are usually lower than similar term monthly finance payments because you are paying for the portion of the vehicle's value used during the lease term.||Payment||Monthly loan payments are usually higher than similar term monthly lease payments because you pay for the entire purchase price of the vehicle. Each payment helps build vehicle equity toward future trade-in.|
|Customize your vehicle through your dealer at time of purchase with approved accessories.||Customization||Customize your vehicle at any time.|
|You have a variety of mileage options to choose from at lease inception to meet your driving needs. You are responsible for any excess mileage charges unless you choose to purchase the vehicle.||Mileage||You may drive as many miles as you want. Higher mileage will lower the vehicle's trade-in or resale value.|
|A normal amount of wear and use is covered. You are responsible for wera and use in excess of normal limits unless you choose to purchase the vehicle.||Wear and Use||There are no charges for vehicle wear and use. Excessive wear will lower the vehicle's trade-in or resale value.|
|At the end of the lease, you have the flexibility to either purchase your leased vehicle at a predetermined price or return it.||End of Term||At the end of the loan, you own the vehicle. It is yours to keep or trade-in on your next vehicle.|
Is leasing or financing right for you?
Financing a new car typically requires larger monthly payments due to the fact that you are paying for the full cost of the vehicle, including taxes. Leasing, on the other hand, requires smaller payments because you are only paying a rental fee and the cost of the vehicle's depreciation during the lease term. Since you are only leasing the vehicle for a limited time, you are required to remove any changes and modifications and return the vehicle at the end of the lease term. When you opt to finance, however, you have complete ownership of the vehicle and can make any changes you want. You can also keep the vehicle as long as you wish or sell it at any time.
At Sherwood Ford, we understand everyone has distinct preferences and financial situations, so our goal is to help you determine which way is best for you. We are happy to sit down with you and discuss your options in terms of leasing or financing a new vehicle. Please don't hesitate to give us a call or stop in to see us—we look forward to assisting you during the car shopping process!